Clix Capital eyes stake in Lakshmi Vilas Bank
The bank routinely evaluates capital raising options and proposals which are in its best interest, it said in a regulatory filing.
"The bank has received preliminary, non-binding letter of intent (LoI) from Clix Capital Services and Clix Finance India dated June 12, 2020, which the Board of Directors of the Bank has considered for further processing in their meeting held today," it said.
Under the non-binding LoI, the proposed transaction is subject to completion of due diligence, which the bank and the intending parties will be carrying out and will be subject to regulatory and other customary approvals, it added.
"In the event, the discussions between the contracting parties in relation to the proposed transactions are successful and definitive agreements are executed, we will make appropriate disclosures as required under the provisions of applicable law," it said further.
The bank has been placed under the prompt corrective action (PCA) framework of RBI since August last year for low capital buffer and higher NPAs coupled with mounting losses.
Following LVB's failure to get RBI nod for merger with IndiaBulls Housing Finance and being placed under PCA framework, there were rumours of the bank being shuttered.
Clix Finance India is a non-banking financial company and offers various products in commercial and retail lending.
LVB stock closed 4.94 per cent higher at Rs 15.30 on BSE. KPM ANU ANU